In Japan, a bicycle with no functional pedals is called: a broken bicycle.
A bike with a motor which propels itself is called: a motor bike.
Japan has had bicycles with electric assist motors for 10+ years. They are popular with moms who need to carry kids but where a car is too cumbersome.
Japan has also had motor bikes for a century. They are popular with lower class workers who want to skip traffic jams and commute cheaper.
Japan is not confused by the shape of a motor bike. Making it look like luggage does not make it luggage (with a motor) but rather a luggage shaped motor bike. Japan appears to handle this Nominative determinism issue quite well.
Looks like it was relaxed in 2008 to up to 200% of input at up to 10kph/6mph then taper to zero at 24kph/15mph, yeah it is kind of restrictive.
I think equal power part is not too complicated to implement, with a load-bearing "just" you just sync synchronous motor driver to the rotor phase and limit current upstream. I believe a prototype also has to be brought to some office to get certified. Frankly it's all par for the course for a Japanese regulation; engineering cost is considered free and everything is supposed to be approved by someone official-ish.
What really happens is people like my friend make their own ebike that is super powerful but looks like a normal bicycle, and while it is against the rules nobody ever questions it because it looks like a bicycle.